Very much a believer in index investing, but an investment in shares of BRK or BRK.b follows a lot of the same principles, and you're getting picks form arguably the best stock picker in history.

BRK has returned something like +10% on the S&P since it's inception over 40 years ago.

Obviously, Buffet will not live forever, but he has hand-picked and groomed his likely successors.

Aside from that, what's the downside vs index investing? Thoughts on brk.a or brk.b as a part of an index investor's portfolio?

This post was edited on 2/29/16 at 9:56 am

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Posted by Iowa Golfer

Heaven

Member since Dec 2013

10230 posts

Posted on 2/29/16 at 9:52 am to Books

Some indexes would actually pay a dividend. As an example, the Wilshire 2000 index fund pays a dividend.

A share of BRK.A as an example, would likely need to be sold at retirement for the average investor.

Edit - Wilshire, not Russel.

This post was edited on 2/29/16 at 10:15 am

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Posted by foshizzle

Washington DC metro

Member since Mar 2008

40599 posts

Posted on 2/29/16 at 10:53 am to Iowa Golfer

quote:
Some indexes would actually pay a dividend.

This is overrated. It is better to be taxed at the LT capital gains rate when you sell shares, plus you avoid double taxation.

This post was edited on 2/29/16 at 10:54 am

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Posted by Iowa Golfer

Heaven

Member since Dec 2013

10230 posts

Posted on 2/29/16 at 10:57 am to foshizzle

I don't disagree with that, but BRK.A is market timing to an extent. An average investor likely couldn't hang on the an A share through retirement. They had better hope their retirement time frame isn't during a down market.

But I guess if you're able to buy an A share in your 30's, it is unlikely that you wouldn't be selling at a gain.

But based on the other thread where people are stating a million isn't a lot of money, I'm guessing this doesn't apply to anyone except poor suckers like me!